CoreWeave launches $3 billion convertible debt sale

Sept 17 — Nvidia-backed CoreWeave said on Thursday it plans to raise $3 ​billion through a convertible debt offering, highlighting the massive funding needs to support the AI infrastructure ‌buildout.

Shares of the neocloud were down more than 3% in early trading. ⁠Through the last close, they ​have gained over 16% ⁠so far this year.

Here are some more details:

• Initial ‌buyers of the ‌debt may purchase up to an additional $500 million. ⁠CoreWeave said it would use ⁠some of the money to protect against dilution and the rest would fund its operations.

• It also launched an at-the-market stock sale program for up to 35 million shares, potentially raising about $2.92 billion at ‌Wednesday's closing price, though it will ​determine whether to sell shares based on market conditions.

• The ATM program, managed by Deutsche Bank, Goldman Sachs, J.P. Morgan and others, is part of CoreWeave's effort to move toward an investment-grade credit profile.

• In the third quarter, CoreWeave said it signed short-term ​customer contracts for compute capacity priced at about $40 million ‌per megawatt on ‌an ⁠annualized basis. It increased contracted power to about 4.2 gigawatts from 3.7 GW at the end of June.

• In August, the company reported revenue backlog of $104.2 billion in the ‌second quarter, later disclosing ​more than $25 billion in additional ‌customer commitments signed ⁠early in ​the third quarter.

(Reporting by Anhata Rooprai in Bengaluru; Editing by ​Shilpi Majumdar)

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